Skip to main content

Smuggling around the world: evidence from a structural equation model

Buy Article:

$47.00 plus tax (Refund Policy)

This article uses a Multiple Indicators Multiple Causes (MIMIC) model to analyse the determinants of smuggling. The analysis reveals that higher corruption and a lower rule of law encourage smuggling. Tariffs and trade restrictions are important push factors, while a higher Black Market Premium (BMP) discourages smugglers. Based on the MIMIC estimates, we calculate an index of smuggling which provides a ranking for 54 countries. We find that smuggling is rampant in Cameroon, Pakistan and Kenya while it is least prevalent in Switzerland, Finland and Sweden.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Keywords: C31; H26; H71; K42; MIMIC models; O17; corruption; illegal trade; smuggling; tax burden

Document Type: Research Article

Affiliations: 1: Faculty of Business and Economics, Chair of Economics, esp. Monetary Economics,Dresden University of Technology, Dresden01062, Germany 2: Faculty of Business and Economics, Chair of Economics, esp. Public Economics,Dresden University of Technology and Centre for European Economic Research (ZEW), Dresden01062, Germany

Publication date: 2012-08-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more